2017 WSIA Conference San Diego, CA 2017 WSIA Agenda How are you - - PowerPoint PPT Presentation

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2017 WSIA Conference San Diego, CA 2017 WSIA Agenda How are you - - PowerPoint PPT Presentation

Aug 20, 2022 143 likes •322 views

The Standard of Excellence in the E&S Wind Market 2017 WSIA Conference San Diego, CA 2017 WSIA Agenda How are you doing? Elite Producer Statistics Elite Producer Program Update 10.1.2017 How are we doing?

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SLIDE 1

2017 WSIA Conference San Diego, CA

The Standard of Excellence in the E&S Wind Market

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SLIDE 2

2017 WSIA Agenda

  • “How are you doing?”
  • Elite Producer Statistics
  • Elite Producer Program Update – 10.1.2017
  • “How are we doing?”
  • AmRisc Overview
  • ACIC Update
  • “What are we doing?”
  • 2017 Product News and Updates
  • “What is The Market doing?”
  • Conditions/Forecast?
  • Hurricanes Harvey and Irma & OUR Team Rubicon Response
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SLIDE 3

Producer Stats – Totals by EPP Rank

$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0

$259.00 $116.00 $65.00 $56.00

In Millions ($)

Total YTD Premium through July 2017

Diamond Sapphire Platinum Gold

YOY

  • 10 %
  • 11%
  • 1%

8 %

Total YOY Premium Change -7.5%

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SLIDE 4

$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0

$25.90 $7.70 $3.10 $0.66

In Millions ($)

Average Premium by Office YTD through July 2017

Diamond Sapphire Platinum Gold

Producer Stats – Average by EPP Rank

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SLIDE 5

0% 10% 20% 30% 40% Submitted

32% 29% 21% 22% Diamond Sapphire Platinum Gold

Average Hit Ratios Producer Stats –Average by EPP Rank

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SLIDE 6

Elite Producer Program Analysis & Update

Key conclusions from “Elite Producer Program 2016” evaluation:

  • 2016 Performance – Very few Producers hit the EPP points threshold for their status
  • 2016 Performance using 2015 rules – Ditto – very few hit the 2015 point thresholds
  • Using hit ratio & complicated EPP points calculation no longer needed to prioritize

“scarce” underwriting resources

  • Market conditions & surplus capacity - “High Demand” commission no longer needed
  • Maintaining GWP Volume requires a larger share of NEW Business
  • Objectives in 2017 Elite Producer Plan

 Simplify Plan  INCENTIVIZE NEW BUSINESS GROWTH  Increase overall commission revenue to Producers

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SLIDE 7

2017 Elite Producer Program Features Effective 10.1.2017

Elite Status based on Gross Written Premium Only Clearance Windows increased for all Elite levels SIMPLE NEW* (18%) and RENEWAL (17%) Commission Schedule = Increased Commission $$

Elite Producer Program Changes

Elite Status Annual Premium Threshold Clearance Days to Eff Date

Diamond 20,000,000 120 days Sapphire 10,000,000 120 days Platinum 5,000,000 110 days Gold 2,500,000 100 days

TopGun Award exclusively for Top 10 NEW* BUSINESS Producers EACH QUARTER Enables Top NB Producers to target a Single NB account for focused “TopGun pursuit” 360 day reservation, No BOR, Sr. Mgmt. UW, Pricing flexibility on the TopGun Award account Automatic invite to annual Elite Producer Event

* NEW= New Business to AmRisc

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SLIDE 8

AmRisc Overview

Owned by BB&T - $221 B Assets BB&T Insurance Holdings – 5th Largest Retailer Largest CAT Property MGA 4th Largest MGA in US $5 Billion ITD GWP for E&S Carriers $607 Million IFP July 2017 $2.3 Billion ITD GWP for AmCoastal $228 Million IFP July 2017 UPC-ACIC Merger April 2017 Target “Best in Class” vs. “best class” 175 CAT Property Specialists Two E&S Carriers added in 2017 Distribution % Split unchanged from 2016 E&S Carriers Admitted Carrier

$5 Billion CAT PML capacity - $350m Per Risk

Premium Split Brokerage Agency % Total

E&S

89% 11% 72%

Admitted

69% 31% 28% Split B/A 83% 17% 100%

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SLIDE 9

*excludes shared

Policy Count 5,830 4,429 2,508 Average TIV $33 M $10.7 M $1.7 M Average Premium $95k $51k $9.6k

Portfolio Overview

Apartment s 26% REAL & LRO 18% TECH IND & MFG 15% BRISK 5% CONDO 15% PUBLIC 14% RETAIL 2% Other 5%

E&S Premium Split

FL 41% TX 21% LA 9% CA 8% MS AL 5% SC NC GA 7%

Other 9%

E&S TIV by State

25 125 287 380 643 607 27 204 307 228 200 400 600 800 1000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IFP 2Q17

E&S Admitted

66 UWs @ 18 yrs avg

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SLIDE 10

2017 ACIC Update

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17

ACIC Premium and Account Retention

Premium Retention Account Retention

Maintaining Exposure & Market Share

  • ACIC TIV and policy count in force

are flat YOY.

  • Premium is stable, and we are

looking to grow in Q3 and Q4 Combined Strength

  • Larger Treaty for 2017 $2.76b
  • UPC + ACIC + $1b In Force Premium
  • 2018 Filing more competitive
  • Quicker Q/B/Policy System

Product has been extensively updated:

  • Enhancement Endorsement
  • New Wrap
  • Blanket Coverage
  • AOP 1,000 and 2% W+H

Enhancement and Condo WRAP

  • ~ 20% take-up since late-2016 launch
  • September 15th – Improved WRAP form to match up with

recent ACIC recently approved ACIC Enhancement Endt.: additional Ord & Law, WDP, Newly Acquired, among others.

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SLIDE 11

2017 Product News & Update

  • SNAP (Super National Accounts Program)
  • Estimate ~$20m GWP by yearend
  • Targeting all shared & layered, forms, layers
  • Exclusive to wholesale
  • TechShare (April 2017 rollout)
  • Shared and Layered (“SNAP” like) for Industrial & Manufacturing
  • Recent successes with coastal aviation and logistics risks
  • Loxley DIC
  • 2017 Program move/transition to AmRisc DIC Team
  • Scottsdale (Nationwide E&S) support continues
  • AROL
  • Adding North Carolina December 1st
  • Continuous improvements to customer experience
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CAT % Model Price* Timeline

*RisCalc % Model Price measures technical price adequacy over time based on: Premium,

Deductibles, Coverage, Terms & Conditions – not just Rate” (100% MP = 32% Design Loss Ratio)

100% MP = “still profitable”

~100%CAT MP JULY 2017 Charley, Francie, Ivan, Jeanne Katrina, Rita, Wilma Financial Crisis 3Q08 - 2009 RMS 11 Feb 2011

and 2017 season is not over yet!..

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E&S CAT % MP Change YOY

E&S RENEWAL CAT %MP CHANGE Year Over Year 12 Month Moving Average

3 year YOY %MP Decreases Financial Crisis 3Q08 - 2009 RMS 11 Feb 2011

Harvey, Irma,..? TBD

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EXPANDED AmRisc & TEAM RUBICON Hurricane(s) Relief Efforts

https://fundraise.teamrubiconusa.org/fundraiser/1084358

All employees are safe and we are heartened by all of the support we have received from our industry peers and colleagues. While we continue the important business of insurance including taking in claims, we are contributing to relief efforts to HELP ALL AREAS AFFECTED BY HURRICANES BACK ON THEIR FEET. AmRisc is supporting Team Rubicon (teamrubiconusa.org) and their volunteer veterans whose mission is captured in their motto: DISASTERS ARE OUR BUSINESS. VETERANS ARE OUR PASSION. All proceeds go 100% to Hurricane Relief efforts.

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SLIDE 15

EXPANDED AmRisc & TEAM RUBICON’s Hurricane(s) Relief Efforts

https://fundraise.teamrubiconusa.org/fundraiser/1084358

Join us Tuesday 5:30-8:00pm for an Update on the TEAM efforts and learn how you can support AmRisc and Team Rubicon’s response: Ultimate SkyBox at Diamond View 350 10th Avenue San Diego, CA 92101 All proceeds go 100% to Hurricane Relief efforts

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SLIDE 16

Thank You!

The Standard of Excellence in the E&S Wind Market